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- In the Netflix document “Be Smart With Money,” Pete Adeney teaches a couple how to save up to $8,000 a month.
- First, they cut Amazon’s grocery and shopping budget to save $2,000 a month.
- Next, they downsize and move to a new home, while renting out their first home for additional income.
The new Netflix documentaryBe smart with moneyIt features a group of ‘interns’ who each receive a year of financial training from one of four renowned financial experts.
Kim and John, a high-income Colorado couple, sought the help of super-provider Pete Adeney, aka AKA Mr. Money Sharpwho retired at the age of 31.
John is a stay-at-home father, while Kim is a psychotherapist and women’s empowerment coach who earns $300,000 a year. Before they met Adeney, their monthly expenses were $13,000. “Every time we make more money, we spend more money,” Kim said. “I want to go to the other end of the spectrum and learn How to saveBut we definitely need someone to help us.”
The couple wanted to save more money and learn how to invest so they could eventually retire early. By the end of their year with Adeney, the couple was able to start saving $8,000 a month toward their retirement goal, which they invest primarily in index funds and stocks.
Here are three budget cuts that helped them do just that.
1. Shopping on Amazon
Adeney helped Kim and John understand that they need to save 25 times their annual expenses in investment accounts before they can safely leave their jobs and retire early. In the documentary, Adeney said, “It’s not your income that really matters. It’s your spending choices.”
Kim and John gave Adeney a detailed description of their expenses, which showed the couple spend $2,000 a month shopping on Amazon. Kim admitted that she used to buy children’s clothes and toys to “reward herself” after a long day at work, but she was ready to kick the habit.
“It’s definitely changed the way I think about Amazon and spending in general because we have a solid goal that we’re working towards. Being able to retire in the next five, six, seven years is a bigger reward than anything else,” says Kim. Three months later, the couple spent An average of only $168 on Amazon shopping.
Before working with Adeney, Kim and John spent $1,200 per month on groceries. “This is like spending at the banquet level for a small family,” Adeney told them. “It’s like you’re feeding kings.”
Adeney showed them how to start bulk shopping to save money on every meal for every meal. After the first three months, the couple were only able to cut their food spending to $1,000 per month.
Adeney said he wanted to push the couple to save more on groceries, but ultimately felt confident that their spending habits would improve over time with their new mindset.
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Kim and John lived in a big house in Colorado, where they paid $36,000 a year Mortgage. After nine months of trying to be as frugal as possible, they decided to downsize their house because it was their biggest expense.
“It feels like we did a lot of simple things, like spending less on Amazon, and more mindful grocery shopping,” John said. “So we decided to downsize our home and sell it here in Colorado.” are planning Rent their home in ColoradoThey will use the profits to pay off the mortgage on their new, smaller home.
Finally, Adeney said in the documentary, “The ultimate goal of money is not to think about money. If you spend low, all other problems will go away.”